For some, bankruptcy is the only option that can save a dire financial situation. Finding yourself struggling to pay off debt and keeping up with car and mortgage payments, can be both stressful and scary. There are many misconceptions surrounding bankruptcy that may deter someone from getting the help they need. One of the most common myths is that filing for bankruptcy won’t allow you to own property. This couldn’t be further from the truth. Read on to get the real facts about bankruptcy and owning property.
How an Exemption Can Help
Under bankruptcy law, you may be eligible for certain exemptions that will allow you to keep certain types of property. Some of the most common types of property exemptions that you may be eligible for are:
- Your home
- Motor vehicles
- Personal property such as family heirlooms and works of art
- Retirement and pension accounts
- Tools of the trade
- Property for business partnerships
It’s important to keep in mind that some exemptions have limits in monetary value when it comes to keeping your personal property. Consulting an experienced bankruptcy attorney can determine the best plan of action should some of your property not meet bankruptcy exemption guidelines.
Property Not Eligible for Exemptions
Bankruptcy can be an excellent way to get a fresh financial start. Although you may be able to keep your home, cars and other property, certain luxury items are not eligible. For example, a yacht or highly valuable jewelry would not qualify for a bankruptcy exemption.
Getting a Mortgage After Bankruptcy
Filing for bankruptcy does not mean you can never get a mortgage again. Although you may not be able to buy a home immediately after filing bankruptcy, you won’t have to wait a lifetime. Life after bankruptcy means financial freedom. Once you have completed your bankruptcy, you’ll have a chance to rebuild your credit and save money. If you are planning to purchase a home, consult your bankruptcy attorney for advice on how to plan and work towards your home buying goals.
Deciding to file for bankruptcy isn’t a lighthearted decision. A skilled bankruptcy attorney can assist you in finding the right bankruptcy option for you that will meet your financial needs.
If you’re concerned about owning and keeping your property, contact Wadhwani & Shanfeld today at (800) 996-9932 for a free consultation.